China has fulfilled more than half of its annual US soybean purchase pledge ahead of President Xi Jinping's visit to Washington. State-owned traders booked at least 1 million tons last week, bringing total purchases close to 13 million tons—more than half of the 25 million-ton annual target through 2028.

The target is part of a trade truce struck last year. Xi and Trump are preparing to meet in late September. China also pledged to buy at least $17 billion of US agricultural products, prorated for 2026. The USDA reported over 600,000 tons of soybean sales for delivery to China in 2026-27. Soybean futures in Chicago rose as much as 1% on Monday, reaching the highest since 2023.

Continued purchases will be needed to sustain the rally, said Joe Davis of Futures International LLC. Longer-term prospects remain clouded by tensions over AI and Taiwan. USDA data showed shipments accelerating to the most since April, with China the top destination. Stone X analyst Mike Castle called it an "encouraging sign."

The USDA raised soybean production and yield estimates. CHS Inc. announced a $700 million soy crushing plant near Evansville, Wisconsin, with completion targeted for autumn 2028.